The Enforcement Directorate has been investigating for several years claims that these companies control inventory via select sellers, which is prohibited by Indian legislation for foreign e-commerce entities. The agency plans to summon company executives following the recent raids and is currently reviewing seized documents. The directorate will also analyse business data from sellers and their interactions with the e-commerce companies over the past five years.
Key takeaways:
- India's financial crime agency, Enforcement Directorate, is set to summon executives from Amazon and Flipkart as part of an investigation into alleged violations of foreign investment laws.
- The investigation follows recent raids on sellers associated with these e-commerce companies, indicating increased regulatory scrutiny in India's $70bn e-commerce market.
- An antitrust investigation revealed that the companies allegedly breached laws by favouring specific sellers, a claim both Amazon and Flipkart deny, asserting their compliance with Indian regulations.
- In a separate development, Amazon is reportedly developing smart eyeglasses designed to assist its delivery drivers in navigating buildings during deliveries.